Document background
The Market Development Agreement is essential for businesses seeking to establish or expand their presence in Malaysian markets through local expertise and resources. This document is particularly relevant when a company (Principal) wishes to engage another party (Market Developer) to develop, promote, and expand their business in specific territories while maintaining control over brand representation and market approach. The agreement, governed by Malaysian law, typically includes detailed provisions for market development activities, performance targets, territorial rights, compensation structures, and compliance requirements. It's commonly used for international companies entering Malaysia or local companies expanding into new regions, ensuring compliance with Malaysian commercial laws, competition regulations, and where applicable, Shariah law principles. The document serves as a comprehensive framework for the business relationship, protecting both parties' interests while facilitating market growth.
